Apple acknowledges it has been overspending on TV shows and movies that many viewers may not be familiar with. The company is reportedly considering a new strategy for Apple TV+ following an impressive $20 billion investment in original content, according to a Bloomberg report.
Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about scaling back budgets. There are indications that the platform is aiming to distance itself from its reputation as the biggest spender in the industry.
This spending has included extravagant amounts for productions, such as $250 million for the miniseries “Masters of Air,” which premiered this year but failed to gain significant traction. Additionally, more than $500 million has been spent on films from notable directors like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these large investments, Apple TV+ holds only 0.2% of TV viewership in the United States, garnering fewer views in a month than Netflix does in just 24 hours. The service has also faced challenges in increasing its subscriber base.
While Apple TV+’s struggles do not seem to be a major concern for the tech company—given that streaming is not a primary focus of its business—there are signs that its era of unlimited spending may be slowing down. This shift is indicated by a hesitance to renew shows for third seasons, as noted in Bloomberg’s data.
Notably, Apple TV+ remains the only major streaming platform without an advertising option. However, this may soon change, as the company recently appointed Joseph Cady, an advertising executive from NBCUniversal.